“My government’s ambition is to make this an innovative, creative, entrepreneurial country while upholding the social welfare state… I think we should learn the lesson of the Great Depression: when an economy enters a deep recession, the only way we can come out of it is from a big push from the public sector.” José Luis Rodríguez Zapatero uttered these words less than a year ago. At the time, with Spain mired in recession, critics could argue with his ideological stance, but nobody could doubt his convictions. However, the prime minister’s announcement on May 12 of a broad and radical raft of austerity measures has seen him perform the biggest U-turn of his six years in government … [Read more...] about The market tears up Zapatero’s social contract